Industrial growth in northern Mexico leads the way

According to Marcos Álvarez, CEO of Market Analysis, several markets in the northern region of Mexico registered the highest levels of gross absorption in the country: Monterrey leads the way with over three million SF, followed by Juárez and Saltillo with around two million square feet, respectively.

MONTERREY

A gross absorption of 3.68 million square feet was reported in Nuevo Leon, in addition to the construction of 3.60 million square feet in speculative buildings, and 1.85 million in BTS.

The CEO of Market Analysis detailed that Apodaca was the largest submarket with the highest participation (1,627,781 SF); followed by Ciénega de Flores (643,795 SF), Santa Catarina (579,894 SF), Guadalupe (413,870 SF), Escobedo (362,313 SF) and Pesquería (52,509 SF).

Significant transactions were made by Toro Company (658,529 SF), Faurecia I (308,353 SF), Johnson Controls (304,216), Faurecia II (213,529 SF); all of the new facilities will be employed for manufacturing. Prologis, User Owner, CPA and Tredec were the project developers.

Automotive (28% of the total square feet absorbed), agro-industrial (24%), and electrical-electronic (21%) were the most dynamic sectors in the state; construction (9%), metal-mechanics (6%), packaging (6%), e-commerce (3%), and supply chain (2%) also played a role.

Among the main investor countries were the United States (56%), France (15%), Mexico (11%), Ireland (9%), Korea (5%), China (3%) and Germany (1%).

JUÁREZ

There was 2.06 million square feet of gross absorption in Juarez, 1.12 million square feet of speculative building construction, and 1.05 million square feet in BTS.

The most dynamic markets were the southeast with 1,123,373 SF, southwest with 659,347 SF, south with 124,929 SF, north with 80,030 SF, and central with 76,014 SF.

Tecma companies carried out four of the five representative transactions in the region, with two BTS constructions in Mar de Plata Industrial Park (250,000 SF each), one in Prologis Industrial Center (221,200 SF), and another in Blvd. Independencia II (200,989 SF); the other one was by NAPS company (218,989 SF) in Upsite Juarez Park I.

RMSG, Prologis, Fibra Upsite and Intermex were the developers involved in the projects.

The shelter sector accounted for 71% of the total square feet absorbed, followed by supply chain (10%), furniture (7%), automotive (6%), and medical (6%).

Regarding participation by country, the United States was the main investor, with 98% of the total square footage; while Japan accounted for the remaining 2%.

SALTILLO

There was 1.58 million SF of gross absorption reported in this region, with 516,038 SF of speculative buildings under construction, and 1.28 SF in BTS. Ramos Arizpe, with 1,041,177 SF, and Arteaga, with 539,500 SF, were the two submarkets with strong activity during the first quarter of 2022.

The automotive (42%), furniture (34%), packaging (11%), supply chain (8%), and electrical and electronics (5%) were the sectors with the largest participation. The United States was the country with the strongest absorption (48%), followed by China (22%), Canada (12%), Mexico (10%), and Korea (8%).

Companies such as HNI (539,500 SF), ABC Group (349,009 SF), Anchor Bay (151,445 SF), Kodaco (131,124 SF), and a confidential company (349,009 SF) carried out the most representative transactions.  Mencosa, Davisa and Finsa were the developers of these projects.

TIJUANA

Tijuana had gross absorption of 1.34 million square feet in the reported period; in addition to the construction of speculative buildings in 1.60 million square feet, and 633,471 in BTS.

NAPS (304,503 SF), Foxcon (292,000), Boe Hefei (181,850), Sultana Packagig (139,696 SF), Merit Aluminum (108,941 SF) carried out the representative transactions. Prologis, REI, MEOR, Cadena and TyG were the developers in charge of the projects.

According to Marcos Alvarez, Florido (867,945 SF), Otay (393,906 SF), and Libramiento (78,037 SF) were the three submarkets where the transactions took place.

The United States was the country with the largest share, with 52% of the total square footage, followed by Taiwan with 22%, China with 16%, and Mexico with 10%. With 38% of the share, the electrical and electronics sector stood out, followed by shelter with 30%, packaging with 18%, metal-mechanics with 8%, and printing with 6%.

REYNOSA

Gross absorption of 721,000 SF was recorded in the Reynosa market; in addition to the construction of 265,433 SF in speculative buildings and 721,000 SF in BTS.

During the reported period, Market Analysis' CEO noted that a representative transaction was completed in the Pharr Bridge submarket by XB Logistics (721,000 SF) for developer REI in the Colonial Industrial Park. The final use of the BTS facility will be logistics, and the investment was made by the United States.

CHIHUAHUA

There was gross absorption of 371,850 SF in the region; and the construction of 258,850 SF in BTS buildings. In the west region, two representative transactions were carried out by Essilor (258,850 SF) and BWI (113,000 SF); both will be used for manufacturing and will be located in the Bafar Tecnológico Industrial Park.

France (70%) and the United States (30%) were the two countries with the largest participation; the medical industry (70%) and the automotive industry (30%) were the two sectors with the highest participation.

NUEVO LAREDO AND MATAMOROS

The CEO of Market Analysis stated that during the first quarter of 2022, there were no movements in the Nuevo Laredo and Matamoros markets.